U.S. cryptocurrency exchange Kraken has made a strategic acquisition of the proprietary trading platform Breakout, as part of its ongoing efforts to enhance services and prepare for an anticipated public offering. The San Francisco-based company announced the acquisition on Thursday, targeting advanced traders with Breakout’s offerings.
The Breakout platform is designed for eligible users, allowing them access to up to $200,000 in notional capital while enabling them to retain up to 90% of profits derived from their trades. This model rewards top traders for executing significant trades and positions itself as a platform where capital is allocated based on skill rather than mere access to funds. “In a world that is rapidly shifting from who you know to what you know, we want to build systems that reward demonstrated performance, not pedigree,” stated Kraken co-CEO Arjun Sethi.
Breakout supports leveraged trading with a rate of five times on Bitcoin (BTC) and Ethereum (ETH) contracts. However, traders must first pass an evaluation to qualify for capital allocation, with ongoing assessments if they exceed specified drawdown limits. Kraken emphasized its commitment to empowering successful traders, stating that the integration of Breakout into its Kraken Pro platform aligns with its mission to provide innovative, performance-driven products.
The acquisition forms part of a broader strategy that includes the launch of new products such as stock and exchange-traded fund trading in select U.S. states. Earlier this year, Kraken announced its plan to acquire the futures trading platform NinjaTrader for $1.5 billion, showcasing its aggressive expansion in the trading space.
Kraken’s intent to go public was reaffirmed by a spokesperson, with expectations of an initial public offering (IPO) potentially occurring as early as 2026. Should these plans come to fruition, Kraken would become the second U.S.-based cryptocurrency exchange to be publicly traded, following Coinbase, which listed on Nasdaq in April 2021.
The backdrop for Kraken’s ambitious plans appears favorable, given a more welcoming political and regulatory environment for digital assets under the current administration. Recently, the U.S. Securities and Exchange Commission (SEC) dismissed enforcement actions against Kraken as well as two other crypto firms, confirming the finality of the decisions and signaling a possible easing of regulatory pressures in the industry.
Sethi highlighted that this acquisition paves the way for Kraken to provide services aligned with modern capital platforms, allowing traders to earn their position, deploy capital with reduced friction, and be compensated based on merit. The emphasis on performance-based trading solutions reflects a shift in the cryptocurrency landscape towards more skill-driven platforms.
